The Australian Prudential Regulation Authority (APRA) has released a policy statement for implementing regulations on financial groups involved in crypto related activities and has set a tentative goal of 2025 for the implementation.
APRA aims to develop a long term prudential framework for crypto-assets and related activities in Australia.
By 2023, APRA also plans to consult with other international regulators, to ensure consistency in approach.
As per the policy, one way to go about regulating stablecoins is by including them into the existing framework for “store-value facilities”. Store-value facilities is an umbrella term for any non-cash facilities in which customers pay money in advance for future redemption.
Additionally, APRA aims to advance requirements for operational risk management in crypto areas such as control effectiveness, business continuity and service provider management.
A blueprint will be released in the next few months.
The regulator explained ways in which entities can manage risk around crypto-assets, asking them to “apply robust risk management controls with clear accountabilities and relevant reporting.”
Entities are expected to carry out a comprehensive risk evaluation before involving in crypto-asset activities and must have plans to alleviate threats related to crypto dealings.
APRA’s statement comes as crypto investment increasingly becomes a mainstream vehicle in the Australian economy. Earlier this week, exchange-traded fund (ETF) issuer 21Shares launched two bitcoin spot ETFs and ether spot ETFs.
